Zai Lab (NASDAQ:ZLAB) Releases Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Zai Lab (NASDAQ:ZLAB) posted its quarterly earnings results on Thursday. The company reported ($0.46) EPS for the quarter, missing the consensus estimate of ($0.44) by ($0.02), Zacks reports. Zai Lab had a negative net margin of 46.83% and a negative return on equity of 25.83%. The business had revenue of $127.60 million during the quarter, compared to analyst estimates of $122.67 million.

Here are the key takeaways from Zai Lab’s conference call:

• Zoci has advanced from IND to a global registrational Phase 3 in under two years for 2L/3L small cell lung cancer, with management targeting an accelerated approval submission in 2027 and first global approval in 2028; clinical data show intracranial activity (80% ORR in 10 patients) and a favorable safety profile supporting planned first-line combination programs.
• R&D momentum is strong with multiple global programs progressing — IND clearance for ZL-6201, IND-enabling work for ZL-1222, an IND plan for TCE ZL-1311 by year-end, and expected first-in-human data this year for immunology bispecific ZL-1503 — signaling a broadened pipeline beyond oncology.
• The China commercial business continues to stabilize the company: full-year revenue rose 15% to $460.2M and Q4 revenue grew 17% to $127.6M, operating leverage improved (R&D and SG&A down as a percentage of revenue), and the company ended the quarter with a strong cash position of $790M.
• Management calls 2026 a transition year and declined to give full-year guidance, citing near-term headwinds from pricing/NRDL dynamics and hospital purchasing patterns (notably affecting VYVGART and ZEJULA) as well as launch timing and modest incremental SG&A investment needs, introducing execution and timing risk for near-term profitability.

Zai Lab Price Performance

Shares of NASDAQ:ZLAB traded up $0.30 during trading on Thursday, reaching $19.69. 527,044 shares of the company were exchanged, compared to its average volume of 745,575. Zai Lab has a 12-month low of $15.96 and a 12-month high of $44.34. The business’s fifty day simple moving average is $18.37 and its 200-day simple moving average is $24.45. The firm has a market capitalization of $2.22 billion, a PE ratio of -10.10 and a beta of 0.88.

Analyst Ratings Changes

ZLAB has been the topic of several research reports. UBS Group began coverage on Zai Lab in a research report on Wednesday, January 7th. They issued a “buy” rating and a $35.00 price objective on the stock. Zacks Research lowered shares of Zai Lab from a “hold” rating to a “strong sell” rating in a research note on Friday, January 23rd. JPMorgan Chase & Co. reduced their price target on shares of Zai Lab from $46.00 to $39.00 and set an “overweight” rating for the company in a research note on Thursday, February 5th. Jefferies Financial Group upgraded Zai Lab to a “strong-buy” rating in a research report on Monday, January 19th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Zai Lab in a research note on Wednesday, January 21st. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $51.59.

Insider Buying and Selling

In other news, insider Rafael Amado sold 10,787 shares of Zai Lab stock in a transaction that occurred on Wednesday, December 31st. The stock was sold at an average price of $17.43, for a total value of $188,017.41. Following the sale, the insider directly owned 52,391 shares of the company’s stock, valued at $913,175.13. The trade was a 17.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 4.96% of the company’s stock.

Institutional Trading of Zai Lab

A hedge fund recently raised its stake in Zai Lab stock. Royal Bank of Canada boosted its stake in shares of Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB) by 214.3% during the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 13,771 shares of the company’s stock after purchasing an additional 9,390 shares during the period. Royal Bank of Canada’s holdings in Zai Lab were worth $498,000 at the end of the most recent reporting period. 41.65% of the stock is owned by institutional investors and hedge funds.

Zai Lab Company Profile

Zai Lab Ltd (NASDAQ: ZLAB) is a biopharmaceutical company focused on the research, development, manufacturing and commercialization of innovative therapies. Headquartered in Shanghai, China, Zai Lab operates R&D centers in Asia and the United States and maintains commercial offices across Greater China, North America, Europe and Australia. The company’s end-to-end platform encompasses discovery biology, translational development, clinical research and global supply chain management.

The company’s marketed portfolio is anchored by Brukinsa (zanubrutinib), a next-generation Bruton’s tyrosine kinase inhibitor approved for several B-cell malignancies.